4the imposition of suspensions, conditions or limitations under section 66 of the Act, the period for which suspensions or conditions are to have effect, and the period for which approvals under section 59 have effect as a result of a limitation, as required by section 69(1); and4

(3)

4the imposition of disciplinary prohibitions, suspensions or restrictions under sections 123A and 123B of the Act, as required by section 124(1).

“limitation” refers, apart from in DEPP 6A.1.2G(2), to a limitation of the period for which any approval of the performance by an approved person of any function to which the approval relates is to have effect (under section 66 of the Act); and43

(5)

4“disciplinary prohibition” refers to a temporary or permanent prohibition on an individual holding an office or position involving responsibility for taking decisions about the management of a MiFID investment firm (under section 123A(2)(a) and (3) of the Act) or a temporary prohibition on an individual directly or indirectly acquiring or disposing of financial instruments (or emission auction products) on his or her own account or the account of a third party, (under section 123A(2)(b) of the Act) or a temporary prohibition on an individual directly or indirectly making a bid at an auction conducted by a recognised auction platform, on his or her own account or the account of a third party (under section 123A(2)(c) of the Act).

The power to impose a suspension, restriction, condition,4 limitation or disciplinary prohibition4 is a disciplinary measure which the FCA2 may use in addition to, or instead of, imposing a financial penalty
or issuing a public censure.
The principal purpose of imposing such a measure3 is to promote
high standards of regulatory and/or market conduct by deterring persons who have committed breaches from
committing further breaches,
helping to deter other persons from
committing similar breaches,
and demonstrating generally the benefits of compliant behaviour. These measures3 are tools that the FCA may employ to help it to achieve its statutory objectives. Examples of measures3 that we may impose include:

3The FCA expects to impose a limitation in two situations. The FCA may impose a limitation where it considers it appropriate for an approval to cease to have effect:

(1)

after a certain period, unless the approved person demonstrates during the period of limitation that it is appropriate for them to be reapproved without the limitation;

(2)

after a short period, without giving the approved person the opportunity to demonstrate that they should be re-approved.

The imposition of a limitation in (2) is equivalent to a withdrawal of approval, apart from that it is carried out for disciplinary reasons and the FCA will have made no finding of lack of fitness or propriety. The FCA recognises that the use of this power will have serious consequences for the approved person concerned; therefore, it will exercise its power in a proportionate manner. The FCA’s policy on determining the length of the limitation is set out in DEPP 6A.3AG.

DEPP 6A.2 Deciding whether to take
action

The FCA1 will consider the full circumstances of each case and determine
whether it is appropriate to impose a suspension, restriction, condition,3 limitation or disciplinary prohibition3.2 The FCA1 will
usually make this decision at the same time as it determines whether or not
to impose a financial penalty or a public
censure.

The FCA1 will take into account relevant factors in deciding whether it
is appropriate to impose a suspension, restriction, condition,3 limitation or disciplinary prohibition3.2 These may include factors
listed in DEPP 6.2. There may also be other factors, not listed in DEPP 6.2, that are relevant.

The FCA1 will consider it appropriate to impose a suspension, restriction, condition,3 limitation3 or disciplinary prohibition3 where it believes that such action will be a more effective and persuasive
deterrent than the imposition of a financial penalty alone. This is likely
to be the case where the FCA1 considers that direct and visible action in relation to a particular breach is necessary. Examples of circumstances
where the FCA1 may
consider it appropriate to take such action2 include:

where the person has
failed properly to carry out an agreed redress package or other agreed remedial
measures;

(4)

where the misconduct appears to
be widespread across a number of individuals across a particular business
area (suggesting a poor compliance culture);

(5)

where the person's competitive
position in the market has improved as a result of the breach;

(6)

if, in accordance with DEPP 6.5D,
the FCA1 considers
that a proposed penalty would cause the subject of enforcement action serious
financial hardship and that it is appropriate to reduce the proposed penalty;4

The FCA1 expects usually to impose a suspension, restriction, condition or limitation in relation to4 activities directly linked to the breach.
However, in certain circumstances the FCA1 may also impose a suspension, restriction, condition or limitation in relation to4 activities that are not directly linked to the breach,
for example, where an authorised person's relevant
business area no longer exists or has been restructured.

DEPP 6A.3 Determining the appropriate length of the period of suspension, restriction, condition or disciplinary prohibition

The FCA2 will consider all the relevant circumstances of a case when it
determines the length of the period of suspension, restriction,4 condition or disciplinary prohibition4 (if any)
that is appropriate for the breach concerned,
and is also a sufficient deterrent. Set out below is a list of factors that
may be relevant for this purpose. The list is not exhaustive: not all of these
factors may be applicable in a particular case, and there may be other factors,
not listed, that are relevant.

When determining
the appropriate length of the period of suspension, restriction,4 condition or disciplinary prohibition4 the FCA2 will
have regard to the principal purpose for which it imposes sanctions, namely
to promote high standards of regulatory and/or market conduct by deterring persons who have committed breaches from
committing further breaches and
helping to deter other persons from
committing similar breaches,
as well as demonstrating generally the benefits of compliant business.

The FCA2 will
have regard to the seriousness of the breach.
In assessing this, it will consider the impact and nature of the breach, and whether it was committed deliberately
or recklessly. Where the breach was
committed by an authorised person,
relevant factors may include those listed in DEPP 6.5A.2 G (6) to (9). Where
the breach was committed by
an individual in a non-market abuse case4, relevant
factors may include those listed in DEPP 6.5B.2 G (8) to (11). Where the breach was committed by an individual in a market abuse case, relevant factors may include those listed in DEPP 6.5C.2G(11) to (14).4 There may also be other
factors, not listed in these sections, that are relevant.

potential economic costs, for example,
the payment of salaries to employees who will not work during the period of
suspension or restriction or the payment of compensation to consumers who
will suffer loss as a result of the suspension or restriction;

The impact of suspension,4 restriction or disciplinary prohibition44 on persons other than the person in breach

The following
considerations may be relevant to the assessment of the impact of suspension,4 restriction or disciplinary prohibition4 on persons other than the person in breach:

(a)

the extent to which consumers may suffer loss or inconvenience
as a result of the suspension or restriction. For example, if it is difficult
for consumers to switch to a
competitor, a longer period of suspension or restriction is likely to have
more impact; and

(b)

the impact of the suspension,4 restriction or disciplinary prohibition4 on markets.

The FCA2 may delay the commencement of the period of suspension,4 restriction or disciplinary prohibition4.
In deciding whether this is appropriate, the FCA2 will take into account all the circumstances of a case. Considerations
that may be relevant in respect of an authorised
person, sponsor or primary
information provider2 include:

1The FCA2 and
the person on whom a suspension,4 restriction or disciplinary prohibition4 is to be imposed may seek to agree the length of the period
of suspension,4 restriction or disciplinary prohibition4 and other terms. In recognition of the benefits
of such agreements, DEPP 6.7 provides that the length of a period of suspension,4 restriction or disciplinary prohibition (other than a permanent disciplinary prohibition) 4 which might otherwise have been imposed will be reduced to reflect the stage
at which the FCA2 and
the person concerned reached
an agreement.

DEPP 6A.3A Determining the appropriate length of the period of limitation for approvals under section 59 of the Act

1The FCA will consider all the relevant circumstances when it determines the period of limitation. Set out below is a list of factors that may be relevant for this purpose. The list is not exhaustive: not all of these factors may be applicable and there may be other factors, not listed, that are relevant.

DEPP 6A.4 The interaction between the power to impose suspensions, restrictions, conditions, limitations or disciplinary prohibitions and the power to impose penalties or public censures

The deterrent effect and impact
on a person of a combination of sanctions3 may
be greater than where only a single sanction3 is imposed. The FCA1 will consider the overall impact and deterrent effect of the
sanctions it imposes when determining the level of any3 penalty and the length
of suspension,3 restriction, condition, limitation or disciplinary prohibition3.

If the FCA1, following the approach set out in DEPP 6.2, considers it appropriate
to impose a financial penalty, it will calculate the appropriate level of
the financial penalty, following the approach set out in DEPP 6.5 to DEPP 6.5D.

If the FCA1, following the approach set out in DEPP 6A.2,
considers it appropriate to impose a suspension, restriction, condition,3 limitation or disciplinary prohibition (or some combination of these)3,it will calculate
the appropriate length of the period (or periods)3 of sanction3, following
the approach set out in DEPP
6A.3 or DEPP 6A.3A, as appropriate2.

Where the FCA1 considers it appropriate to impose a combination of sanctions3, it will decide whether the combined impact on
the person is likely to be disproportionate
in respect to the breach and
the deterrent effect of the sanctions.

If the FCA1 considers the combined impact on the person is
likely to be disproportionate, it will decide whether to reduce the period
of suspension, restriction,3 condition, or disciplinary prohibition, and3 the amount of any3 financial penalty or both,
so that the combined impact of the sanctions is proportionate in relation
to the breach and the deterrent
effect of the sanctions. The FCA1 will decide which sanction or sanctions3 to reduce after considering all the
circumstances of the case.

In deciding the final level of
any3 financial penalty and the length of any3 period of suspension, restriction, condition,3 limitation or disciplinary prohibition3,
the FCA1 will
also take into account any representations by the person that
the combined impact will cause them serious financial hardship. The FCA1 will
take the approach set out in DEPP 6.5D in assessing this.

The FCA1 may depart from the approach set out in DEPP 6A.4.2 G.
For example, the FCA1 may
at the outset consider that a financial penalty is the only appropriate sanction
for a breach but, having determined
the appropriate level of financial penalty, may consider it appropriate to
reduce the amount of the financial penalty for serious financial hardship
reasons. In such a situation, the FCA1 may consider it appropriate to impose a suspension, restriction, condition,3 limitation or disciplinary prohibition3 even if the FCA1 at
the outset did not consider such a sanction to be appropriate. The FCA1 will
take into account whether the person would
suffer serious financial hardship in deciding the length of the period of
suspension, restriction, condition,3 limitation or disciplinary prohibition3 and may decide not to impose such a measure2 if it considers such action would result in serious financial hardship.